FX.co ★ AUDUSD Bearish Continuation | 8th Feb 2022

On the H4 timeframe, in reference to last week's analysis, price indeed dropped from the resistance level. Price is abiding to the descending channel, signifying an overall bearish momentum. We can expect price to drop from 1st Resistance in line with 61.8% Fibonacci retracement towards 1st Support in line with previous swing low and 100% Fibonacci projection. Our bearish bias is further supported by the RSI indicator where it is abiding to the descending trendline resistance.

Trading Recommendation

Entry:0.71403

Reason for Entry:Horizontal resistance and 61.8% Fibonacci retracement

Take Profit: : 0.69865

Reason for Take Profit: previous swing low and 100% Fibonacci projection

Stop Loss: 0.71761

Reason for Stop Loss:

61.8% Fibonacci projection